The AI Boom Runs on Chips, but It Can’t Get Enough

The artificial-intelligence revolution is being likened by Google’s chief executive to humanity’s harnessing of fire. “Because there is a shortage, it’s about who you know," said Sharon Zhou, co-founder and CEO of Lamini, a startup that helps companies build AI models like chatbots. Chip costs vary, but Nvidia’s advanced AI chips are sold by some retailers for around $33,000, though they can command higher prices in secondary markets amid the high demand. “People are now just continuing to pay for them even if they don’t need them," said Adam Wenchel, CEO of Arthur, which builds tools to protect companies from AI risks such as data leaks. “Even if you’ve already paid upfront, it doesn’t mean the GPUs come to you in the next day or week," said Aravind Srinivas, CEO of Perplexity AI, which builds an AI-driven conversational search tool.